Unity Bancorp in Clinton, N.J., warned that it faces a consent order from the Federal Deposit Insurance Corp. tied to Bank Secrecy Act and anti-money-laundering compliance.
The $1.7 billion-asset company disclosed in a Wednesday regulatory filing that the proposed order would require its bank to improve supervision for complying with BSA and anti-money-laundering laws.
The bank will be required to review and improve compliance, risk assessment and internal controls, the filing said. It would also be subject to independent testing and required to provide more resources for its staff.
The FDIC, in a Feb. 27 notice for the upcoming order, said it expects Unity to review its compliance with Office of Foreign Assets Control regulations.
Unity did not disclose the specific reason for the looming regulatory action.
The agreement would require Unity to retain an outside firm acceptable to the FDIC and the New Jersey Department of Banking and Insurance to review all accounts and transaction activity to determine appropriate reporting.
Unity would need to create a special oversight committee to include independent directors while also issuing quarterly progress reports to its regulators.
Unity said it had begun making program improvements, including investments in system upgrades and staff training. It also plans to hire a “highly experienced BSA/AML professional” to oversee the improvement effort.
